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Figure 5-1 Shows the Preferences of a Consumer for Food

Question 70

Multiple Choice

Figure 5-1 shows the preferences of a consumer for food and other goods.He is initially in equilibrium at point A where the budget line MN is tangent to the indifference curve.
Figure 5-1 Figure 5-1 shows the preferences of a consumer for food and other goods.He is initially in equilibrium at point A where the budget line MN is tangent to the indifference curve. Figure 5-1 -In Figure 5-1,after the excise subsidy the total consumption of other goods increases by _____. A) 0 B) MK C) KE D) ME
-In Figure 5-1,after the excise subsidy the total consumption of other goods increases by _____.


A) 0
B) MK
C) KE
D) ME

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